Bullion Update: Resistance Support for Today in Gold and Silver

Bullion Update: Gold and silver prices traded sharply lower in evening trades on Monday after hitting multi-month highs in the morning session. Yellow metal prices were hit by heavy profit taking from the shorter-term futures traders and bearish markets.

Gold has support at $1749 while resistance is at $1804. Silver has support at $21.50, while resistance is at $22.90. In INR terms gold has support at Rs 52,900, while resistance is at Rs 54,000. Silver has support at Rs 63,750, while resistance is at Rs 66,666.

Gold price continue to trade steady, hovering around the $1804 mark, after falling more than 1.5% in the previous session as the US dollar rebounded on bets that strong economic data may prompt bigger interest rate hikes by the Federal Reserve. The dollar index rebounded after data showed US services industry activity unexpectedly picked up in November, prompting speculation the Fed may lift interest rates more than recently projected. Positive US services industry, employment data, is offering more evidence of underlying momentum in the economy as market participants anticipate global growth slowdown next year.

Volatility today might be a bit low as no major data points are scheduled from the US although focus shifts today the RBI policy meeting scheduled tomorrow. Top bullion consumer China is set to announce a further easing of some of the world’s toughest COVID curbs as early as Wednesday, sources said, as investors cheered the prospect of a policy shift that follows widespread protests and mounting economic damage. Broader trend on COMEX could be in the range of $1749 and on domestic front prices could hover in the range of Rs 52,900 – 54,000.

COMEX Gold trades mildly higher today recovering from the lows of $1778/oz hit in yesterday’s session. After solid gains posted in the previous week, gold gave away a part of gains on Monday as the US Dollar and bond yields recovered amid some encouraging US data prints. The US Dollar recovered from a five-month low as US factory orders and ISM services PMI rose above expectations. With better-than-expected data prints, the Federal Reserve gets more room for extended interest rate hikes that is not good for non-yielding assets like bullion. 

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